Mr. Truong Dinh Tuyen talks about the target of 500 million USD from Nghe An's wood export

Thu Huyen March 25, 2019 11:13

(Baonghean.vn) - By 2025, Nghe An must strive to achieve an export turnover of 500 million USD from wood and wooden products. The goal is to promote wood processing in Nghe An, making the province a center for production and export of wooden products in the North Central region.

That is the opinion of former Minister of Trade Truong Dinh Tuyen, former member of the Party Central Committee, former Secretary of Nghe An Provincial Party Committee, Head of the Economic and Social Advisory Group for the Chairman of the Provincial People's Committee at the Workshop.Orientation and solutions for rapid and sustainable development of the wood processing industry and non-timber forest products in Nghe An province took place on the morning of March 25.

Ông Trương Đình Tuyển. Ảnh: Thu Huyền
According to Mr. Truong Dinh Tuyen, Nghe An has the conditions to become the timber center of the North Central region. Photo: Thu Huyen

Need to increase the age of planted forest wood

Sharing at the conference, Head of the Socio-Economic Advisory Group for the Chairman of the Provincial People's Committee Truong Dinh Tuyen affirmed that the area of ​​planted forests in Nghe An is large enough to provide raw wood for the processing industry. Nghe An also has a synchronous transportation system, including North-South, East-West roads, railways and seaports, which is very convenient for transporting raw wood and exporting products, although the distance from the raw material area to the export port is relatively far. However, this is not the main reason limiting the development of the province's wood processing industry, because many wood processing factories in other provinces still take raw materials and semi-finished products in Nghe An.

Chăm sóc vườn keo ở BQL rừng phòng hộ Yên Thành. Ảnh: Văn Trường
Taking care of acacia garden at Yen Thanh Protective Forest Management Board. Photo: Van Truong

Raising the issue that by 2025 Nghe An must strive to achieve an export turnover of wood and wooden products of 500 million USD, according to Mr. Truong Dinh Tuyen, it is necessary to increase the age of planted forest wood to 7 to 8 years, and possibly to 12 years. Because currently, forest growers often exploit when the trees are only 3 - 4 years old. Exploiting at this age, each hectare of forest, if planted very densely, will increase the cost of buying seedlings, but will only be 100 m3wood, sold in the forest for 60 million VND. This is the time when the cost of planting the forest is the highest, until the canopy closes (in the 3rd year). From the 3rd year, the forest planter almost does not have to spend time taking care of it.

"Exploiting trees when they are only 3-4 years old, forest growers have low income. On the other hand, 3-4 year old trees are mainly used to make wood chips, the selling price of a ton of wood chips at the port is only 2.9 million/ton; if exported, it is about 136-140 USD/ton. If harvesting takes 7-8 years, then from the 3rd year, forest growers will have almost no additional costs..." - The head of the Socio-Economic Advisory Group explained.

Increase investment attraction

According to Mr. Truong Dinh Tuyen, Nghe An needs to form a concentrated wood processing industrial cluster to strongly attract businesses, including FDI enterprises, to invest in wood processing in this industrial cluster, especially Nghe An enterprises that have successfully invested in Binh Duong, Dong Nai, Ho Chi Minh City, Binh Dinh and other localities.

Investing enterprises can set up branches in Nghe An and invest in manufacturing finished products for export at Cua Lo port, but can also produce intermediate products and transfer them to the headquarters for assembly for export.

Sản phẩm gỗ thanh xuất khẩu của cCông ty CP lâm nghiệp tháng Năm. Ảnh: Thu Huyền
Exported wooden products of May Forestry Joint Stock Company. Photo: Thu Huyen

Along with that, it is necessary to issue a mechanism to encourage enterprises to establish production networks according to chain linkages, creating conditions for specialization to increase productivity and save investment costs, creating convenience for customers. Forming links according to production chains in the direction of specialization also helps to monitor the environment more centrally and effectively. When the number and scale of investment enterprises reach a large enough level, it is necessary to form a market to supply raw wood (both planted and imported wood) in this industrial cluster.

Establishment of Nghe An Wood Association

Focus on human resource training to provide highly skilled labor for processing plants.

Support businesses to apply Blockchain technology to trace origins so they can export to the EU to expand the market in the world's largest economic entity, especially when there is EVFTA with preferential import tax rates.

Mr. Truong Dinh Tuyen also suggested that the province should establish Nghe An Timber Association and join the Vietnam Timber Association to exchange market information, import policies of other countries, promote trade, new technologies in afforestation and wood processing and support training...

In addition, Mr. Truong Dinh Tuyen also emphasized the development of non-timber forestry, the development of bamboo and rattan weaving, and medicinal plants. The demand for medicinal materials for the production of oriental medicine in our country is estimated at 60 thousand tons/year. Currently, only 20 thousand tons are met, the rest must be imported, mainly from China. To develop medicinal materials, it is necessary to allow people to grow medicinal materials under the forest canopy, including national forests.

"Because of its large forest area, Nghe An needs to set a goal of increasing the value of non-timber forest products higher than the national average growth rate," Mr. Truong Dinh Tuyen emphasized.

Thu Huyen